What to do to mitigate the impact of an HMRC investigation

In these times of strained government finances, maximising tax receipts has become a key priority for the Chancellor.

As a result HMRC have been using a range of new tactics, ranging from spot checks to tax amnesties, to ensure that business are paying the right amount of tax.

HMRC inspections may target your VAT, PAYE, Corporation Tax or even self assessment calculations. They may even challenge the quality of your business records or your fiscal compliance as an employer.

Unfortunately, the costs of dealing with an investigation can be significant, both in terms of generating supporting documentation and if necessary appealing against an HMRC decision.

Fortunately there are two effective ways to mitigate the risk and impact of an inspection.